Etowah per capita income drops less than other areas in state

Etowah County's personal per capita income dropped less than the state's other metropolitan statistical areas in 2009, according to Bureau of Economic Analysis statistics released Monday.

By Andy PowellTimes Staff Writer

Etowah County's personal per capita income dropped less than the state's other metropolitan statistical areas in 2009, according to Bureau of Economic Analysis statistics released Monday.The county's decline of -0.3 percent in 2009 in personal per capital income was tied for the second lowest among the state's 12 MSAs.The drop in 2009 was cushioned with funds received from “countercyclical income transfers” such as unemployment compensation and federal stimulus funds payments, according to BEA.In 2008 the Gadsden MSA, which includes all of Etowah County, had growth in personal per capital income of 3.3 percent.According to BEA, total personal income is a comprehensive measure of the income of all persons from all sources including wages and salaries, employer provided health insurance, dividends and interest income, Social Security benefits and other types of income.Per capita personal income is total personal income of an area divided by population based on Census Bureau mid-year estimates.BEA said per capita personal income growth is a measure that highlights differences in economic conditions across MSAs by removing the effect of growth rates.David Lenze, an economist with the Bureau of Economic Affairs with the Commerce Department, said Gadsden's MSA saw a drop in income from salaries and property income in 2009, but there was an increase in “transfer receipts” such as Social Security, Medicare, Medicaid, unemployment compensation and some stimulus programs.“The net earnings of workers fell in Gadsden, the property income of residents fell and the transfer received by unemployed workers and retirees and others rose and softened the declines in the other types of incomes,” Lenze said.Lenze said the Gadsden MSA's net earnings in 2009 was $1.766 billion down, from $1.834 billion the previous year — a drop of $68 million.The area's 2009 property income which includes rental income, personal dividend income and personal interest income was $446 million, which was down $24 million.Transfer receipts in 2009 were $898 million up $83 million from 2008.“That's a big increase in transfer receipts,” Lenze said. “That cushioned the declines in the other components — the losses of workers, the losses of investors.”Lenze said the Gadsden's drops were less that the national average.He said the MSA received $23.6 million in American Recovery and Reinvestment Act payments in 2009.The distribution from the ARRA payments depended on the unemployment rate. The county's unemployment rate in 2009 was 10.5 percent.

Advertising

Online Services

Original content available for non-commercial use under a Creative Commons license, except where noted.
Gadsden Times ~ 401 Locust St. Gadsden, AL 35901, Gadsden, AL 35901 ~ Privacy Policy ~ Terms Of Service